Following a two-month consultation exercise, more than 72% of the 2330 tenants who responded opted for a 3.5% rise, equal to an average increase of £2.90 per week and capped at £3.50.

A report to the council’s City Governance Committee on Monday will ask councillors to approve the change, which would come into effect from April 1 2024.

Committee convener Councillor John Alexander convener said: “A rent increase at this level will allow us to continue to deliver quality services as prices rise while keeping rent increases affordable for our tenants during the continuing cost of living crisis.”

Almost 20% of the council’s tenants responded to the annual rent survey which ran throughout November and December last year.

Councillor Mark Flynn, neighbourhood regeneration, housing and estate management convener, said: “By giving tenants three options we were able to offer them a balanced choice between services remaining at the same high standard or giving the council additional resources to spend more on things tenants have told us what they want, such as improved energy efficiency.

“The proposed increase will allow us to continue vital work such as continued investment in external wall insulation for existing stock along with other energy saving programmes like loft insulation and cavity wall insulation. We are also acutely aware of the financial pressures people are under right now and we are doing all we can to support people through these tough times.”

The proposed rise will help the council deliver key housing priorities which include:

• Tenancy sustainment
• Reducing the level of households in fuel poverty
• Ongoing investment in existing stock and creation of new social housing
• Continued investment in environmental improvements
• Registered Tenants Organisations (RTOs) were also consulted as part of the process with Dundee Federation of Tenants Association opting for the 3.5% increase.

The City Governance Committee meets on Monday January 22.